Copper to $2?

Copper to $2?

In the chart below copper appears to be breaking down from a multi-year flag pattern formed by lines (1) and (2) this week.

Line (2) represents the top end of what appears to be a historical channel, with line (3) representing the parallel, symmetrical support zone of that channel.

Historically, when copper has traded within this channel, per the red/green arrows in 2008/2009, it has tended to make hard and fast moves.

Will the same occur again now that it’s re-entered, with a move down to $2 at line (3) likely?

2013-03-19 Copper - Weekly